Swift Taps Chainlink’s CCIP for Successful Tokenization Experiment

The Society for Worldwide Interbank Financial Telecommunication (Swift) announced on Thursday the success of its blockchain interoperability experiment. The series of tests were conducted using Chainlink’s recently launched Cross-Chain Interoperability Protocol (CCIP) and in collaboration with a group of financial companies.

The latest announcement is likely to blur barriers hindering the interoperability between traditional financial systems and blockchain technology.

Swift’s Experiment for Blockchain Interoperability

The essence of Swift’s experiment is to enable traditional financial institutions to use their existing systems to interact with tokenized assets. The process would also facilitate transactions across “a potentially unlimited number” of public and private blockchain networks.

Part of the experiment process involved transferring simulated tokenized assets between two digital wallets using the same blockchain and two wallets using a private and public blockchain, respectively.

With Swift’s experiments turning out to be successful, companies in the world of traditional finance will not need to create a new system for interacting with blockchain technology. The move would save these institutions additional costs and resources. 

Swift joined forces with several major financial firms to conduct its experiments. They include Australia and New Zealand Banking Group Limited (ANZ), BNP Paribas, BNY Mellon, Euroclear, Lloyds Banking Group, SIX Digital Exchange (SDX), and The Depository Trust & Clearing Corporation.

Commenting on the experiment, Alain Pochet, Head of Client Delivery, Securities Services at BNP Paribas, said:

“With the increasing number of blockchains, the task of connecting our traditional technical platforms and ensuring interoperability between blockchains presents a growing challenge that we must overcome. In this regard, the experiment demonstrated the potential to leverage the extensive connectivity already established with Swift.”

What is Chainlink CCIP?

Swift noted that it used its systems and Chainlink CCIP to create its pilot solution. Chainlink co-founder Sergey Nazarov once expressed conviction that banks would adopt the company’s CCIP to interact with blockchain.

In July 2023, the decentralized blockchain oracle network Chainlink launched the mainnet of its CCIP. Chainlink describes CCIP as a system that facilitates seamless connection and transfer of tokens between blockchains. Currently, Chainlink’s CCIP has been integrated with Avalanche, Ethereum, Optimism, and Polygon networks.